1.

Call Money Market:

o Deals in overnight funds lending and borrowing among banks and financial institutions.
o Regulated by the Reserve Bank of India (RBI) to maintain liquidity and control short-term interest
rates.
2. Treasury Bills Market:
o Short-term government securities issued by the RBI to meet short-term financing needs.
o Available in three tenures: 91 days, 182 days, and 364 days.
o Mainly purchased by banks, financial institutions, and corporations.
3. Commercial Paper Market:
o Corporations issue unsecured short-term debt instruments to raise working capital.
o Maturities range from 7 days to 1 year.
o Provides companies an avenue to access short-term funds.
4. Certificate of Deposit Market:
o Banks and financial institutions issue time deposits with fixed maturities.
o Offered to individual and institutional investors.
o Enhances liquidity management and fund-raising for banks.
5. Repo and Reverse Repo Market:
o Involves the sale and repurchase of securities with a predetermined agreement.
o Repo: Used for short-term borrowing by banks and institutions.
o Reverse Repo: Used by investors to park excess funds temporarily.
6. Commercial Bills Market:
o Short-term credit instruments issued by businesses to meet working capital requirements.
o Typically bought and sold in secondary markets.
7. Money Market Mutual Funds (MMMFs):
o Investment funds that pool money to invest in money market instruments.
o Provides individuals and institutions with easy access to money market securities.
8. Foreign Exchange Market:
o Involves the exchange of one currency for another.
o Influences short-term interest rates and exchange rates.
9. RBI Operations:
o The Reserve Bank of India conducts Open Market Operations (OMOs) and Liquidity Adjustment
Facility (LAF) operations to manage liquidity and interest rates.
o Controls money supply and monetary policy.
10. Participants:
o Banks, financial institutions, corporations, mutual funds, NBFCs, and individual investors
participate in the money market.
o Each participant has specific roles in borrowing, lending, and investing.
11. Regulatory Framework:
o The RBI regulates and supervises the money market to ensure its smooth functioning.
o Sets guidelines for issuance, trading, and settlement of money market instruments.
12. Liquidity and Short-Term Focus:
o The money market is characterized by high liquidity and short maturities.
o Participants use money market instruments for short-term funding and liquidity management.
13. Interconnectedness with Other Markets:
o The money market is closely linked to the capital market and foreign exchange market.
o Movement in money market rates influences overall financial markets.
14. Risk Profile:
o Money market instruments are generally considered low-risk due to short-term nature and high
liquidity.
o Investors seek safety and stable returns in this market.
15. Role in Monetary Policy:
o The money market plays a vital role in the implementation of the central bank's monetary policy
objectives.
o Central bank actions affect money market rates and liquidity conditions.